SUPERMARKET giant Tesco today underlined its dominance after posting record profits of £2.55 billion - equivalent to more than £4,800 a minute.

The retailer's underlying pre-tax profits for the year to February 24 were more than 13% ahead of the previous year.

SUPERMARKET giant Tesco today underlined its dominance after posting record profits of £2.55 billion - equivalent to more than £4,800 a minute.

The retailer's underlying pre-tax profits for the year to February 24 were more than 13% ahead of the previous year, matching analysts' expectations for the Cheshunt-based company.

Tesco also coped with recovering competition from Asda and Sainsbury's to increase like-for-like UK sales by 5.6%. It recorded sales of £35.6 billion across its 1,500 stores in the UK.

Tesco's overall pre-tax profits for the year were £2.65 billion after the company made gains following A-Day pension changes in April 2006.

The supermarket's latest profits figure sparked protests from Friends of the Earth, which said the time had come to "curb the power of the Tesco juggernaut".

Existence

Campaigner Vicki Hird said: "The supermarket giant's market dominance is bad news as it allows it to dictate conditions to suppliers and to drive High Street stores out of existence."

The Competition Commission is also investigating the grocery sector amid claims that the larger stores are squeezing out smaller retailers.

Tesco's gathering strength in areas such as DVDs, clothing and household items was shown when it said its UK non-food business had grown sales by 11.6%, despite a tougher domestic consumer environment. The group's non-food sales reached £7.6 billion - 25% of UK sales in total.

The company saw strong growth of electronics, DIY, toys and sports goods from its larger Tesco Extra stores. The firm's clothing range - which includes its £3 jeans - saw sales increase by 16%.

The performance came despite £42 million in start-up costs for the company's Tesco Direct catalogue service and establishing its operations in the US, which is set to open its first stores later this year.

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STORES giant Tesco will smash its own record this week when it unveils annual profits of more than £2.5 billion - almost £5,000 a minute. Tesco, which collects £1 in every £7 spent on groceries in Britain, will reveal that providing everything from food to houses has led to the record amounts.

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